Automated Summary
Key Facts
The case involves Anthony George Butler (Applicant) and Nosson Spitzer (Respondent) regarding the determination of legal costs for a lease extension at 102a Kingston Road, Wimbledon, London SW19 1LX under Section 60 of the Leasehold Reform and Urban Development Act 1993. The Tribunal, Judge Edgington, ruled that the reasonable legal costs, including VAT and disbursements, amount to £3,109.80. The application was submitted on 26th May 2022 (Case Reference: JM/LON/00BA/OC9/2022/0106).
Issues
The Tribunal assessed the reasonable legal costs payable by the Applicant for a lease extension under Section 60 of the Leasehold Reform and Urban Development Act 1993. Key issues included whether the Respondent's claimed hourly rates (£400 for Grade A, £350 for Grade B, £300 for Grade C) were justified, the application of the 'indemnity principle' to limit recoverable costs, and the need to adjust for duplicated work across multiple fee earners. The Applicant argued rates exceeded government guidelines, while the Respondent emphasized the specialist nature of enfranchisement work. The Tribunal concluded that rates were too high and adjusted them to £400 (Grade A), £325 (Grade B), and £250 (Grade C), applying a £299 discount to reach a total of £3,109.80 including VAT.
Holdings
The reasonable legal costs of the Respondent payable by the Applicant pursuant to Section 60 of the Leasehold Reform and Urban Development Act 1993 are £3,109.80 including VAT and disbursements. The Tribunal determined that the claimed rates were too high and adjusted them: Grade A at £400, Grade B at £325, and Grade C at £250. A Wisbey discount of £299 was applied, resulting in a total of £3,109.80 after VAT. The Tribunal noted duplication in work by multiple fee earners, which justified reducing the costs.
Remedies
The Applicant is required to pay the Respondent's reasonable legal costs of £3,109.80 (including VAT and disbursements) under Section 60 of the Leasehold Reform and Urban Development Act 1993. This amount was determined after assessing claimed costs of £3,808.80 and applying a £299 discount to reduce the total to £3,109.80.
Monetary Damages
3109.80
Legal Principles
The indemnity principle applies under Section 60(2) of the Leasehold Reform and Urban Development Act 1993, limiting the Respondent's recoverable costs to what they would reasonably pay their own solicitors. The Tribunal also considered the Wisbey discount and the reasonableness of hourly rates for specialist enfranchisement work.
Cited Statute
Leasehold Reform and Urban Development Act 1993
Judge Name
Judge Edgington
Passage Text
- The reasonable legal costs of the Respondent payable by the Applicant pursuant to Section 60 of the 1993 Act are £3,109.80 including VAT and disbursements.
- I consider that the rates being claimed are, indeed, too high... it would, in my view, be reasonable for them to charge clients... £400 for a Grade A fee earner, £325 for a Grade B and £250 for a Grade C.
- The Applicant refers to the latest government guideline hourly rates... £373 per hour for the senior partner, £289 per hour for the other partners and £244 per hour for the solicitor.